Global Risks Report 2022

• 13 Jan 2022

For Prelims: World Economic Forum, Energy Transition Index, Global Competitiveness Report. Global Gender Gap Report, Global Risk Report, Global Travel and Tourism Report

For Mains: Global Challenges, Impact of Covid-19, Environmental Risks, Technological Risks, International Risks.

Why in News

Recently, the Global Risks Report 2022, an annual report, was released by the World Economic Forum. It tracks global risk perceptions among risk experts and world leaders in business, government, and civil society.

• It examines risks across five categories: economic, environmental, geopolitical, societal, and technological.

Key Points

• Impact of Covid-19: The societal and environmental risks have worsened the most since the start of the pandemic.
  • “Social cohesion erosion”, “livelihood crises” and “mental health deterioration” are three of the five risks seen as the most concerning threats to the world in the next two years.
  • Apart from this, it has significantly contributed to “debt crises”, “cybersecurity failures”, “digital inequality” and “backlash against science”.
• Global Economic Outlook: It majorly perceived the short-term economic outlook to be volatile, fractured, or increasingly catastrophic.
  • The most serious challenge persisting from the pandemic is economic stagnation.
• Environmental Risks: “Extreme weather” and “climate action failure”—appear as top risks in the short-, medium-and long-term outlooks.
  • Governments, businesses, and societies are facing increasing pressure to transition to net-zero economies.
• Geopolitical and Technological Risks: In the longer-term horizon, geopolitical and technological risks are of concern too—including “geoeconomic confrontations”, “geopolitical resource contestation” and “cybersecurity failure”.
• International Risks: Artificial intelligence, space exploitation, cross-border cyberattacks and misinformation and migration and refugees were rated as the top areas of international concerns.
  • Growing insecurity in the forms of economic hardship, worsening impacts of climate change and political persecution will force millions to leave their homes in search of a better future.
  • The prospect of 70,000 satellite launches in coming decades, in addition to space tourism, raises risks of collisions and increasing debris in space, amid a lack of regulation.

World Economic Forum

• About:
  • The World Economic Forum (WEF) is a Swiss nonprofit foundation established in 1971, based in Geneva, Switzerland.
  • Recognized by the Swiss authorities as the international institution for public-private cooperation.
• Mission:
  • Committed to improving the state of the world by engaging business, political, academic, and other leaders of society to shape global, regional, and industry agendas.
• Founder and Executive Chairman: Klaus Schwab.
• Some major reports published by WEF are:
  • Energy Transition Index.
  • Global Competitiveness Report.
  • Global IT Report
    • WEF along with INSEAD, and Cornell University publishes this report.
  • Global Gender Gap Report.
  • Global Risk Report.
  • Global Travel and Tourism Report.

Source: IE